The social science called economics is commonly divided into two major subject matter areas: macro and micro. Microeconomics, the topic of this book, deals with the spending dicision of households, the production decisions of business firms, and how prices and wages are determined in the product and input markets. In addition, some special topics are covered, including household production, the environment, and the cost and returns to a college education.
The main objectives of this text are to introduce you to the most important concepts in microeconomics, and to help you develop your skills in using these concepts to answer economis questions or to make economic decision. In other words, major emhasis is on concepts and their applications, as opposed to factual or descriptive material.